Draft:Sunan Model
Southern Jiangsu Township Economic Development Model
From Wikipedia, the free encyclopedia
Sunan Model, also known as the Southern Jiangsu Township Enterprise Model, refers to a path of economic development adopted in the early stage of China's reform and opening-up in the southern part of Jiangsu Province (mainly Suzhou, Wuxi, and Changzhou; often including Nantong, and sometimes extending to northern Zhejiang areas such as Jiaxing and Huzhou). It achieved rural industrialization and non-agricultural transformation through the development of township and village enterprises (TVEs). The term was first proposed and named by sociologist Fei Xiaotong in his 1983 article "Small Towns: Further Exploration"published in Xinhua Digest. It has become one of the classic models of rural industrialization and county-level economic development in China, and is commonly listed together with the Pearl River Model and Wenzhou Model as the three major regional economic development models in the early phase of China's reform and opening-up.[1]
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Formation Background
Southern Jiangsu is located in the core area of the Yangtze River Delta and the Taihu Lake basin. It features a large population with limited arable land, but enjoys a prominent locational advantage due to its proximity to Shanghai, facilitating the absorption of industrial technology spillover, market overflow, talent mobility, and information exchange from Shanghai. Historically, the region had a relatively strong industrial foundation, with developed capitalist commerce and industry in modern times, and township and village enterprises (previously commune- and brigade-run enterprises) had already accumulated some assets during the planned economy period. These conditions provided a favorable environment for rural industrialization.[2][3]
From the late 1970s to the early 1980s, following the implementation of the household contract responsibility system, a large surplus rural labor force emerged. Relying on the existing foundation of commune- and brigade-run enterprises, southern Jiangsu farmers vigorously established collectively owned township enterprises under the leadership of township governments, achieving localized industrialization.[4][5]
Core Features
The main characteristics of the Sunan Model include:
- Collective Economy Dominance: Township enterprises were mainly owned collectively by townships or villages, with property rights belonging to township or village collectives.[6]
- Strong Government Guidance: Township governments directly participated in resource integration, provided land, funds, and credit support, and selected capable individuals ("able persons") to serve as enterprise leaders, forming an operational mechanism of "able persons managing factories, government leading."[1]
- Localized Industrialization: Farmers "left the land but not the countryside, entered factories but not cities," transforming into workers locally in rural areas, achieving non-agricultural transfer without large-scale rural-to-urban migration.[5]
- Relying on Shanghai's Radiation: Fully utilized Shanghai's technology, talent, markets, and supporting capabilities to undertake the diffusion of urban industry, forming models such as "Sunday engineers" for technical support.[7]
- Market Orientation: Although during the transition from planned to market economy, enterprises were mainly regulated by the market and focused on producing marketable products.[3]
This model effectively solved the problem of surplus rural labor, promoted primitive accumulation and industrialization in rural areas, and created the "Sunan Speed."[2]
Development Course and Evolution
- Late 1970s–mid-1980s: Commune- and brigade-run enterprises were restructured into township enterprises; the collective economy developed rapidly, and township industry rose suddenly, becoming the pillar of the rural economy.[6]
- Late 1980s–mid-1990s: Township enterprises expanded rapidly; southern Jiangsu produced a number of economically strong counties/cities such as Jiangyin, Zhangjiagang, Kunshan, and Changshu, which occupied a significant share of the national Top 100 Counties.[6]
- Mid-1990s–early 2000s: With intensifying market competition and changes in the macroeconomic environment, problems such as unclear property rights and rigid mechanisms in collective enterprises became evident. Southern Jiangsu launched property rights reform of township enterprises, with many converted into share cooperatives, private enterprises, or mixed-ownership entities. At the same time, it seized the opportunity of Pudong's development and opening-up, vigorously attracted foreign investment, and developed development zones and park economies, shifting from endogenous to outward-oriented growth.[3]
- 2000s–present: The emergence of the "New Sunan Model" or "Post-Sunan Model" , characterized by outward-oriented economy, park-based economy, high-tech industries, and urban-rural integration. Multiple ownership forms (foreign capital, private economy, shareholding system) coexist; industry concentrates in parks, farmers concentrate in towns, and land concentrates in large-scale operations, promoting urban-rural integration and high-quality development.[5]
Relationship with the Suzhou Model
The Suzhou Model is regarded as an evolutionary form or a specific regional variant of the Sunan Model, mainly referring to the pattern that emerged in the Suzhou area after the 1990s. Its predecessor was the Sunan Model, but there are clear differences: the Suzhou Model emphasizes outward-oriented economy, foreign capital dominance, and export processing; it withdrew township government's direct control over enterprises and shifted toward investment attraction and park development. In contrast, the Sunan Model focuses more on the endogenous development of collectively owned township enterprises in the 1980s. In academic discussions, the two are often closely related, but the Suzhou Model highlights foreign capital-driven growth and integration into globalization.[8]
Influence and Significance
The Sunan Model holds pioneering significance in the history of China's county-level economic development: it was the first to explore a path of rural industrialization and achieved localized non-agricultural transformation of farmers.[1] It laid a solid industrial foundation and entrepreneurial talent pool in southern Jiangsu, propelling many counties and cities into the national forefront.[3] It provided valuable experience for rural reform in China and influenced the nationwide development of township enterprises.[5] It demonstrated the effectiveness of combining government leadership with market mechanisms at a particular stage, while also reflecting institutional changes during the transition from plan to market.[4]
As China's economy enters the stage of high-quality development, the Sunan Model has evolved from a pure township enterprise model into a regional development path characterized by innovation-driven growth, opening-up leadership, and urban-rural integration, continuing to play an exemplary role in China's modernization process.[5]